Sentences with phrase «underlying asset gaining»

UNG has witnessed a decline in its net asset value due to transaction and borrowing costs despite its underlying asset gaining in value.

Not exact matches

These financial products track the price of an underlying asset (in this case, bitcoin) and gain or lose value relative to that base asset.

We use Bitcoin as the underlying technology to gain exposure to digital assets like the US Dollar or Ethereum.

Since funds are structured differently according to how they gain exposure to the underlying asset, an exchange - traded fund's tax treatment inherently depends on both the asset class it covers and its particular structure.

MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax - deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV; and, as a result, the MLP fund's after - tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

If market participants anticipate an increase in the price of an underlying asset in the future, they could potentially gain by purchasing the asset in a futures contract and selling it later at a higher price on the spot market or profiting from the favorable price difference through cash settlement.

A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

Investing in commodities indices that are constructed using long or short positions in futures on physical commodities whose value is determined based on the price of the underlying physical commodity plus yield and that trade on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining commodities exposure and can provide a means for market participants to access the five components of the returns of the asset class.

This means the net asset value of the fund is going up at the same pace as the value of the dividends plus the capital gains of the underlying stocks.

When the underlying assets in a mutual fund are sold, earnings are subject to capital gains tax.

As an owner (equity investor), you participate directly in the gains or losses of the underlying asset.

As no underlying asset is actually owned, these derivatives escape Capital Gains Tax and HMRC view income derived from this speculation as tax - free.

Put options gain value when the underlying asset falls.

a «capital gain» on your original investment if the value of the scheme's underlying investment assets has gone up when they are sold.

A swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

They can also be used to gain more efficient investment exposure to a set of underlying assets without buying the assets directly.

Some professionals and traders do speculate and trade in derivatives to capture gains that come from price fluctuations in the underlying asset.

Even if you don't have the money to buy the underlying asset itself, you can share in potential gains and losses on the value of that asset.

ETFs can take advantage of their two - tier structure (market makers create and redeem shares in exchange for the underlying assets, then sell / buy those shares to / from you) to essentially eliminate «capital gains distributions» (those pesky annual payouts that a fund is required to make when it sells its underlying assets at a profit as part of share redemption or asset rebalancing).

A CFD is a derivative that allows traders to gain exposure to movements in asset classes, such as stocks, without owning the underlying asset.

That means that when the price of the underlying asset moves up by 5 points, will make gain 1000 points.

GAIN offers cryptocurrency trading either as an over-the-counter (OTC) derivative or as a future, allowing traders to speculate on price movements without owning the underlying asset.

The company uses smart contract capabilities on the Ethereum blockchain to create crypto assets backed by real estate, allowing holders to gain exposure to real estate and profit from rental income and capital appreciation of underlying properties.